Funding Innovation: Unlocking Opportunities Under India’s RDI Scheme
Introduction
The Research, Development, and Innovation (RDI) Scheme, launched by the Department of Science & Technology (DST) in July 2025, represents a transformative initiative to boost India’s innovation ecosystem. With a corpus of ₹1 lakh crore (≈USD 12 billion), it aims to catalyze private-sector investment in advanced research and strategic technologies.
Purpose and Vision
The RDI Scheme creates a financial ecosystem for startups, SMEs, and established firms to scale high-impact research and innovation. It addresses barriers such as long gestation, high risk, and capital-intensive deep-tech projects by providing patient, long-term capital support.
Encouraging Private Investment in Innovation
The scheme incentivizes private industry through concessional loans, equity support, and expert fund managers. By shifting from grants to structured finance, it promotes sustainable, commercially viable innovation and collaboration between corporate R&D, startups, academia, and investors.
Supporting High-TRL Projects
The RDI Scheme focuses on projects at Technology Readiness Level 4 or higher, which have proof-of-concept and are ready for pilot testing and market entry. Priority areas include AI, quantum computing, energy technologies, biotechnology, space technologies, and digital economy solutions.
Reducing Dependence and Strengthening Strategic Capabilities
The scheme aims to reduce reliance on foreign technology and strengthen domestic capabilities in critical sectors such as energy, defense, AI, space, and advanced manufacturing, supporting India’s strategic and economic independence.
Promoting Long-Term Growth
Through the Deep-Tech Fund of Funds, the RDI Scheme channels government resources through expert fund managers to provide long-term capital, accelerate commercialization, and encourage startups to scale globally and create high-value jobs.
Prime Minister’s Vision
Prime Minister Narendra Modi launched the RDI Fund in November 2025, highlighting its role in transforming India’s R&D ecosystem. His vision emphasizes private sector participation, technological self-reliance, and global competitiveness.
Governance and Implementation
The scheme is overseen by the Anusandhan National Research Foundation (ANRF) and coordinated by the Department of Science & Technology. A two-tier funding model ensures strategic allocation and expert management of capital.
Conclusion
The RDI Scheme represents a historic leap in India’s innovation policy. By focusing on high-TRL projects, encouraging private investment, reducing foreign dependence, and promoting commercialization, it creates a sustainable and globally competitive innovation ecosystem.